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Finding a property in Dubai is easy; finding the right property at a reasonable price is difficult, finding the right property that represents a good deal is near impossible! However, a good agent will steer you through the minefield and make the near impossible, possible. And there lies your problem – finding a good agent.
As you know, Globaleye assists buyers and agents in arranging the financial aspects of the property purchase. From arranging international finance solutions and offshore company formation to loan protection and Spot FX on money transfers – but we do NOT sell property. Notwithstanding, we are constantly working with many agents/realtors/developers, so we posed the question to them about what to look for when seeking the services of a good agent. We had numerous responses from many agents and below I have summarised some of the key points I think you should consider.
Do the initial leg-work and get an idea of what represents your ideal home. When you know your budget and the type of villa / apartment you want, you are ready to test out the numerous agents available to you as advertised in the local press. Preferably, try to obtain a referral through your friends/colleagues who have already bought through an agent and gauge the success of their experience.
The best Real Estate companies have Consultants who specialize in certain developments and have a thorough knowledge of both the development in question and, therefore, should have an in depth understanding of factors that will effect the value in the future (particularly important if buying off plan) i.e. location of schools, location of nearest mosque, future road systems, location of nearest planned monorail station etc. If you find you know more than the agent, move on. Don’t under-estimate the knowledge and experience of the agent. A good one will have the purchase process know-how and backing to ensure that once you commit a deposit - the deal is done. If you place a deposit without completely knowing the processes particularly the legal and financial implications, you could not only result in the loss of your home but also the loss of your deposit monies. I find too many buyers coming to our offices that have committed to a deposit and have yet to incorporate their offshore company, know little of the legal implications and/or have no chance whatsoever of arranging finance! Your agent should show you the phased payment schedule clearly in writing and discuss the implications should you be unable to fulfil this commitment if you are unable to do so for whatever reason.
Once you have found an agent with expert knowledge and an in-depth understanding of the buying process, stick with them. The good agents come at a cost but this should ultimately save you money. Listing brokers charge 1% commission while a full service agent will charge you 2% (normally this is split 50/50 with a listing broker but the full service agent will have a network of 20-30 listing brokers and be in a position to both justify the fee and ultimately negotiate a price that saves you money).
Presently, most people follow the principle of: 1. find the property that they want 2. make an offer 3. seek finance. If they want a good deal a seller will be looking for an immediate sale (with finance taking up to 2-3 weeks for approval and offshore company incorporation another 2 possibly, a good deal is rarely achievable). A good athlete knows the principle of Ready! Steady! Go! The same is true of buying property in Dubai. Be Ready! Know the property you want and have your financials / offshore company in order. Be Steady! Wait until the property in question presents itself at the right price and finally Go! Close the deal immediately. With speculation in the property market rife and prices still showing an upward trend a good deal is snapped up immediately you must be in position to take advantage of this when the opportunity presents itself (i.e. be ready to Go!). If you follow the principle of Ready, Steady, Go you can negotiate up to 5%-7% off the purchase price. Incidentally we can arrange offshore companies in 2 hours!
And when you have done the deal, a good agent is one who does not finish when the commission is paid. They should be able to offer guidance on rental options, offer a full management service if possible, interior design solutions, landscaping and to ensure all the confirmatory documents to the deal are concluded to your satisfaction. If you are satisfied then it is likely that you will be the one referring more business their way.
There are some simple rules to follow as you can see and they are not dissimilar to the process you would follow when seeking the services of any other professional. Simple rules of thumb like making sure the agent isn't fly by night. There are some large well established international realtors in Dubai and when looking through the newspaper, for example, which advertisements are the most attractive and carefully thought through? When you call the realtors company, is the phone answered immediately? Are the sales people courteous? Do they talk you through a range of options, not just the idea you came with, or a single offering from them? Have they won internationally recognized awards? Do they have a good presence on the Internet? Ask around: do they have statements from satisfied customers? Can you speak to some of them about the agent's service? Do they have lawyers you can refer to? Do they have financial people you can refer to? Do they offer you extra services/assistance?
In summary, do your homework, be prepared financially and do not be pressured into a project if you do not feel comfortable doing so. There will always be other opportunities and you only have to visit the various sales offices of the main developers here to view the future building projects they have planned to be built. A good agent is worth their weight and can make you a lot of money in the buoyant Dubai property market so happy house and agent hunting!
For other articles we have done on property you can visit Property World ME
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